Stock Mister Fails to Avoid the Crown Marketing, Inc. (OTC:CWNM) Stock from Dropping

Sometimes there can be too much of a good thing, so despite the many promotional emails coming in the past two days, Crown Marketing, Inc. (OTC:CWNM) dropped more than 13%. After a healthy interest and high-volume buying on January 23rd, the ticker kept its up and down pattern from the past few days, proving itself a position for risk-takers who can move their investments fast.

This fresh pump by Stock Mister offers exposure to pharmaceutical technologies, as CWNM develops a precise system for controlled drug delivery. The group is listed as development-stage company with still limited revenues. The ticker was barely traded in the past two years until it spiked into activity in the fall of 2012, mostly due to paid promotions.

Crown Marketing relies on its concept of smart drug delivery that ensures constant, safe and effective plasma drug levels. But only time will tell if the company can make it with somehow limited financial resources:

• $15,229 cash, up from zero for the previous quarter
• Zero sales, down from $4,500 for the same quarter of 2011
• $150,336 notes payable

The latest news from the company showed Crown Marketing had licensed its technology non-exclusively to unmentioned health supplement companies. Just as immaterial is the claim that the global supplement market is worth $142 billion, since we still don’t know if Crown can take a piece of that pie. It seems Crown Marketing is better at delivering promises than at actually gaining from the marketing of its product.

Crown Marketing seems to be burning borrowed cash in its bid for marketing success, and its assets are quite far from the 28 million current market capitalization. The shares started trading in earnest after a 10-for-one split in October and their low $0.15 price may allow easy taking of positions, especially with 190 million shares outstanding and only less than five million traded on a usual day.

With all those warnings, we may say CWNM has little to offer and its latest spike is purely the product of Stock Mister. This pumper has a long history of very loud past promotions, taking almost inactive tickers to a brief spike and costing investors a large percentage of their money.

One of the previous pumps, IceWeb, Inc. (OTC:IWEB) fizzled out fast like many others. It started another climb at the beginning of January, but managed only a modest addition to price and continues to slide down after the last email. In the case of companies offering little in terms of real products and marketing success, it is important to estimate if you can afford the risk of a ticker artificially inflated by a pump.